At a glance
Megaport guides FY27 capital spending to between A$1.28bn and A$1.38bn, after A$152.6m in the year to 30 June 2026.
Megaport takes delivery 6 to 9 months after a deposit, then builds revenue for a further 3 to 6 months after installation.
A sample of fewer than 5% of the contracted GPUs is scheduled for test deployment in the December 2026 quarter, with the rest across FY27.
Latitude.sh, the cloud business Megaport bought in November 2025, operates the 14 locations Megaport connects to directly.
FY26 earnings before interest, tax, depreciation and amortisation reached A$77.1m, a 25% margin, above guidance of 21% to 24%.
Megaport's first year of AI compute spending
Megaport, the Brisbane company that sells connections between data centres, reported its full-year result to the ASX on 20 August 2026. Revenue rose 37% to A$312.2m, and the shares closed that day at A$19.31, from A$20.34. On 3 June 2026 Megaport had raised A$827.3m to buy NVIDIA graphics processors and run its own AI inference service.
Page 14 of the investor presentation puts A$54.3m of capital expenditure against A$1.0m of revenue on those contracts. The June plan set them to commence in the first half of calendar 2027, so the reporting year closed before any of the hardware was due to run.
A 16 to 22 month payback target on the GPU Pool
Megaport places deposits once a contract is signed, takes delivery 6 to 9 months later, installs the machines in phases, and builds revenue over a further 3 to 6 months. It targets payback on the GPU Pool, its stock of on-demand graphics processors, at 16 to 22 months. The investor presentation describes the compute contracts as fixed term, with revenue contracted across that term whether or not the customer uses the equipment.
Chief financial officer Leticia Dorman told the results call on 20 August 2026 that the company will "continue to place deposits on significant orders of GPUs, and as we start to have those be delivered, we will continue to utilise that cash." Page 25 schedules a sample of fewer than 5% of the contracted GPUs for deployment "for testing" in the December 2026 quarter, with the remainder to follow "in line with the above unchanged metrics."
The same page records that supply constraints prevented Megaport from securing equipment for parts of two of the 3 June contracts. It entered alternative arrangements and two further contracts supplying higher-grade GPUs, which it expects to add about US$87.1m of contract value with no material change to recurring revenue or capital expenditure.
Latitude.sh runs the 14 locations Megaport connects to
Megaport owns the compute, network and storage hardware and installs it in data centre space it contracts from other operators. The investor presentation states that equipment, space and power were procured for every contract announced before 20 August 2026.
Megaport reports 1,138 data centres across 31 countries as network sites where it sells connections, a separate count from the sites holding its own compute. The investor presentation records direct connectivity to 14 locations operated by Latitude.sh, the cloud business Megaport bought in November 2025. Latitude.sh's website lists 25 locations it operates, including Melbourne and two in Sydney.
Megaport describes the counterparties as United States technology providers backed by institutional shareholders, and does not name them or the deployment sites, as listed companies routinely do not.
Lenders committed A$825m on 19 August 2026
Cash at 30 June 2026 was A$435.4m, before the A$309m retail tranche of the 3 June 2026 entitlement offer allotted on 2 July 2026. The results announcement describes binding commitments signed on 19 August 2026, from a syndicate of domestic and international banks, for an A$825m facility that includes refinancing an existing A$150m one. Chief executive Michael Reid told the results call the company has "only just got the commitment letters at this stage."
Megaport guides FY27 capital spending to between A$1.28bn and A$1.38bn, on revenue of A$620m to A$730m. It guides compute revenue at A$305m to A$405m, against A$43.9m in FY26, and network revenue at A$315m to A$325m.
What to watch
Megaport's financial calendar puts the half-year to 31 December 2026 on 18 February 2027, the first report covering a quarter with the test deployment scheduled. Neither the results announcement nor the investor presentation states the useful life Megaport applies to compute hardware. FY26 earnings before interest, tax, depreciation and amortisation reached A$77.1m, a 25% margin, and Megaport guides 38% to 40% on that measure for FY27. The FY26 statutory result was a net loss of A$39.0m after depreciation and amortisation.